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MORGAL ACHIEVES PARTNER LEVEL

On February 17, 2004 Jim McGregor, President, and Rodney Hickman, General Manager, represented Morgal Machine Tool Company, Inc at the John Deere annual "Achieving Excellence" banquet in Davenport, Iowa. Morgal was one of 164 global direct material suppliers out of John Deere's 6,700 Worldwide supplier base to achieve the Partner Award in 2003. Morgal was one of only 4 suppliers serving the Deere Greenville, Tennessee plant to receive the award.

The metrics that Morgal exceeded to achieve the award are: Quality Performance less then 500ppm; Delivery Performance less than 15,000ppm; Cost Management including 3% cost downs; along with additional scoring in areas of Technical Support and Wavelength (evaluates the supplier's initiative to support the business relationship). When asked about the award, Morgal President Jim McGregor replied, "I am proud of the efforts that everyone at Morgal exhibited to win this award. Going the extra mile to take care of the customer is what makes our organization great. We were one of the few to meet John Deere's strict requirements."

The corporation, consisting of Morgal Machine Tool, Ohio Stamping and Machine, Inc., Rose City Manufacturing and Carmichael, manufactures sprockets, pulleys, engineered stamped metal products for automotive, rail, lawn & garden, agriculture, first operation blanks, assembly and screw machine products.